Book Analysis: On the Brink: Inside the Race to Stop the Collapse of the Global Financial System

Introduction

Henry M. Paulson Jr. served under the regime of George W. Bush as the 74th Secretary of the Treasury from June 2006 to January 2009. Paulson was Chairman of Goldman Sachs since the firm's initial public proposing in 1999. He joined Goldman Sachs Chicago Office in 1974 and rose through the ranks holding several positions including, Managing Partner of the firm's Chicago office, Co-head of the firm's investment Banking Division, President and Chief Operating Officer, and Co- Senior partner. Prior to joining Goldman Sachs, Paulson was a constituent of the White dwelling household assembly, serving as Staff Assistant to the leader from 1972 to 1973, and as employees Assistant to the aide receptionist of protecting against at the Pentagon from 1970 to 1972.

Discussion

Former receptionist of the Treasury Henry M. Paulson, Jr. writes an insider's account on how he dealt with the utmost economic crisis confronting the joined States—and the world—since the large Depression. A fast-paced narrative, his book included Paulson's personal recollections of key moments and decisions. It will also encompass his insights on what has happened since he left agency and will add reflections on where he feels our policies should take us in the future.

According to Henry M. Paulson Jr., the US Treasury secretary, the credit markets are more important measures of severity of the financial crisis than the stock markets, although harder to follow. To measure the recent disruptions we can monitor LIBOR, the London Interbank Offered Rate -, the short-term Treasury bill yield and TED spread. The difference between three months LIBOR and Treasury bill yield is a measure of stress in the credit markets. In addition, the rate of higher-yield bonds indicates the willingness to lend to more risky business.

Former ...